Reference no: EM132827696
Question - The following information are taken away from the books of Nehemiah Company, which assumes first-in, first-out (FIFO) for inventory cost flow: Inventory (in units) 2019 2020
Beginning inventory None ?
Production 10,000 units 9,000 units
Ending inventory 3,500 units 1,000 units
Sales (P 2 per unit) ? ?
Variable manufacturing costs (P0.75 per unit) P7,500 P6,750
Fixed manufacturing costs P5,000 P5,400
Selling and administrative expenses (50% variable) P4,500 P7,500
Required -
Determine 2019 profit under variable and absorption costing.
Determine 2020 profit under variable and absorption costing.